Harness Money

I do not want to work forever.

There will come a day where I physically cannot work anymore. By that time I should have enough money working for me that I can do other things.

Retirement takes careful planning. If you have a 401k or a pension then you will be receiving payments every year from these accounts and uncle sam will be there to collect his tax dollars.

Where are you going to live?

How much income do you need?

Do you have a health care plan?

Do you have your Must-Have documents in order spelling out your wishes?

Do you plan to work or travel?

There is a reason this step comes later in the process. By now you should have a list of all your cash and investment accounts and their value. You should know how much you have saved for retirement.

Social Security

This could be a whole other idea list. Social security is a government program that you pay into while you are working. There are several factors that determine how much you will receive when you decide to collect Social Security.

Do your research!

The longer you hold out to take Social Security the more you will receive each month in payment. Do the math and figure out what age you are going to start collecting Social Security. This is based on how much you need each month.

You also get penalized for working and collecting Social Security so keep that in mind.

Medicare/Medicaid

This is the government program where you get health coverage. Again, do your research! Medicare is complicated and there are different forms of health coverage.

If you have been contributing to your Health Savings Account you should able to use this money as a health savings cash supplement.

But you still may need more health coverage than simply Medicare. Determine if you need a supplemental health care plan. Create a comprehensive health care plan for your retirement. You will reach retirement age.

Click here to take the next Harness Money step.